Main menu

Monthly Archives: March 2017

An overdraft is a very useful thing to have. Here’s how to manage one.

Used correctly, an overdraft is a very useful tool for businesses of all sizes. Here’s how to manage one.

An overdraft is a credit arrangement with a bank allowing a customer to write cheques or make payments from the current account up to an agreed limit. It is a form of working capital finance.

An overdraft facility fee is often charged, along with interest on the amount of the (debit) balance on the current account, at an agreed rate.

Key steps

Managing your overdraft properly puts you in control. This means that you need up-to-date information. Ensure that you have registered your current account online with your bank. This way, you will be able to easily track the money going into, and out, of your account.

Understand the charges and fees which may be applied to your overdraft. There are typical fees, such as: Facility fee – This is a once-off fee for setting up your overdraft. Renewal fee – This is only charged if you renew your overdraft at the end of the agreed term. Referral fee – This is a fee the bank charges for each transaction made on your current account, when you are over your agreed overdraft limit. Surcharge interest – This is extra interest that the bank will charge on top of the standard interest for the overdraft, if you exceed your agreed overdraft limit.

Avoid paying by cheque as much as possible. Where possible, use online payments facilities instead. In most cases, it’s a lot cheaper to use online facilities,

Ask your customers to pay you electronically instead of paying you by cheque.This will save you money and ensures you gain quicker access to your funds and potentially avoid the need for an overdraft (or at the least reduce the level of overdraft facility required).

Never use an overdraft as a long-term borrowing facility.The interest rate for an overdraft is generally higher than for term lending, for example, so you should consider, carefully, the alternative ways of funding your business. Alternatives to an overdraft could include:

Injecting more cash into the business

Improved management of your debtor book

Seeking increased terms from suppliers

Other bank finance, including invoice discounting, asset finance and a term loan

TOP TIPS

Plan ahead: Keep your cashflow projections up-to-date and understand how your business’s financial needs may change in the period ahead. Stress-test your cashflow. For example, if your debtors take an extra 30 days to pay or if your creditors want payment up front, how will this affect your cashflow

Be cautious:Be realistic about how quickly you expect your customers to pay you. It’s better to expect slow payment and receive the cash more quickly. If you think that you will probably need access to more funding than your current overdraft limit, talk to your bank immediately.

Be proactive: If you do not have an overdraft, or if your existing overdraft limit is too low, contact your bank to discuss a suitable limit, on a temporary or permanent basis, based on the working capital needs of your business. Early contact will help you to avoid any potential embarrassment later, not to mention any additional charges, should an overdraft limit be breached.

The International Union of Cinemas says that Ireland has the most cinema goers of any country in the EU. Below are six of the best cinemas in the land.

Lighthouse Cinema

Located in the Market Square in Smithfield, the Lighthouse cinema is regarded as one of the coolest places to catch a movie in Dublin. The Lighthouse distinguishes itself from its competitors by offering punters a mixture of Hollywood blockbusters, old classics and art-house films. A stone’s throw from the achingly cool Stoneybatter, the cinema is surrounded by a wealth of hip pubs and restaurants.

Eye Cinema

Galway’s locally-owned Eye bills itself as “the cinema that Galway deserves but has never had”. It sets itself apart from the big cinema chains by giving customers a choice of both mainstream film as well as more arthouse offerings. Visitors get the full multiplex experience with multiple screens, cafés, bars and an ice cream parlour. However, its Eye’s commitment to culture (as well as independent cinema it also host live events with musicians, poets, and comedians) that makes Eye the best in the West.

Phoenix Cinema Dingle

This family-run cinema is just another reason to love Dingle; an adult ticket to its nightly evening showing is only €8 while a matinee ticket will set you back €5.50. The 150 seat cinema also has its ‘Art Film’ night on Tuesdays, with tea and biscuits thrown in for good measure. A good option following a day exploring the Wild Atlantic Way or one of the town’s other attractions.

Century Cinemas

Another family run business, Century has been bringing cinema to Letterkenny for over 75 years. It has all the trappings of a multiplex with eight screens, stadium seating, and 3D movies. However, it also broadcasts live theatre and dance productions. In 2013 it opened its very own ice skating rink, Century Ice, so there’s no shortage of things to do in this enterprising venue.

IFI

Home of the Irish Film Institute, Temple Bar’s IFI is the go-to cinema for Dublin film buffs who want to get their fix of the latest in cutting-edge movie making. Its Georgian building gives visitors a cosy cinema-going experience, while its bar and café give people a place to hang out before sampling what’s on offer on the big screen.

Movie Junction

Cork’s Movie Junction is Ireland’s only dedicated drive in cinema, open seven nights a week. Visitors pick up snacks at the drive-thru kiosk, pull up in the parking bay, tune into the Movie Junction FM frequency on the car radio, then sit back and enjoy the latest blockbuster. Pizzas and chips can be ordered and delivered to your car door, and canopies keep your windscreen clear when it rains. A little slice of American culture in County Cork.